A.M. Best Lowers Rating of CNA Reinsurance Co. Ltd. To A- -Excellent-.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--July 23, 2001 A.M. Best Co. has lowered the A (Excellent) financial strength rating of CNA (Certified NetWare Administrator) See Novell certification. Reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. Co. Ltd., London, to A- (Excellent) and placed it under review with negative implications. This rating action reflects the sharp deterioration in operating performance in 2000 and early 2001 -- which fell short of the parent's and A.M. Best's expectations -- and weakened capitalization. The rating also reflects the uncertainty of reserves, given recent adverse development and continued uncertainty regarding U.S. workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. carve-out business written in 1997-1999 through arrangements with IGI IGI International Genealogical Index IGI International Gemological Institute IGI I'm Going In IGI I Get It IGI Institute of Geologists of Ireland IGI Inspector General for Investigations IGI Institution Gang Investigator (prisons) Underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. Agencies Ltd. (IGI). Nevertheless, the rating remains Excellent based on the explicit support provided by the parent, Continental Casualty Company, through a $25 million capital contribution in July 2001 and a guaranty As a verb, to agree to be responsible for the payment of another's debt or the performance of another's duty, liability, or obligation if that person does not perform as he or she is legally obligated to do; to assume the responsibility of a guarantor; to warrant. of liabilities through year-end 2002. The parent has also provided CNA Re a stop-loss agreement covering liabilities arising from IGI and another covering liabilities arising from 1990 and prior underwriting years, including asbestos and pollution reserves. In addition, $50 million of available capacity under a line of credit provided by the parent remains, which could be utilized to support both capitalization and liquidity. The rating will remain under review with negative implications pending further discussions with management regarding the potential for future adverse loss reserve development and ongoing strategic plans given the company's diminished market presence following a substantial reunderwriting of its book. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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